President Trump Signs Executive Order to Reclassify Marijuana as Less Dangerous Drug

Historic Shift in Federal Drug Policy

In a landmark decision, President Donald Trump signed an executive order on Thursday, December 18, 2025, directing federal agencies to reclassify marijuana as a less dangerous drug. This move marks one of the most significant changes to U.S. drug policy in decades, aiming to acknowledge the plant's legitimate medical uses and ease restrictions on research and the cannabis industry.

From Schedule I to Schedule III: What It Means

The executive order instructs the Attorney General to take all necessary steps to move marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA) 'in the most expeditious manner'. Previously, marijuana was classified as a Schedule I substance, alongside drugs like heroin and LSD, indicating a high potential for abuse and no accepted medical use. The new Schedule III classification places it alongside substances such as ketamine and certain anabolic steroids, recognizing its accepted medical uses and a moderate to low potential for physical and psychological dependence.

Implications for Research and Industry

This reclassification is expected to have several key impacts:

• Medical Research: It will significantly ease barriers for medical research into cannabis, allowing scientists to more readily study its benefits, potential dangers, and future treatments.
• Tax Burden Reduction: State-licensed marijuana dispensaries could see a substantial reduction in their federal tax burden, as they may no longer be subject to IRS Section 280E, which prohibits businesses dealing in Schedule I or II substances from deducting ordinary business expenses.
• Investment and Banking: The change is anticipated to attract new investment into the cannabis industry and improve access to banking services, which have historically been challenging due to federal prohibitions.
• Medicare Pilot Program: The order also includes provisions for a pilot program that would allow Medicare patients to be reimbursed for certain CBD products.

President Trump stated that the decision was influenced by strong public support and numerous calls from individuals experiencing chronic pain, emphasizing the 'common sense' nature of the reclassification.

Not Federal Legalization: Key Distinctions

Despite the significant reclassification, the executive order does not federally legalize marijuana for recreational use across the United States. It also does not alter existing criminal justice laws or penalties for marijuana offenses. The production and sale of cannabis will continue to be governed by state laws, with federal law still maintaining restrictions on its unauthorized cultivation, possession, and sale.

Background and Future Steps

The process of reviewing marijuana's classification began under the previous administration, with the Department of Health and Human Services (HHS) recommending the move to Schedule III in August 2023. The Drug Enforcement Administration (DEA) was in the process of reviewing this recommendation, which had stalled. President Trump's executive order is intended to accelerate this rulemaking process. The Attorney General, Pam Bondi, is now tasked with finalizing the rule, which will involve a public comment period and is expected to face potential legal challenges from opponents of the reclassification.